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ARM Holdings in $600m bid for US group Treasure Data

Telegraph Reporters
ARM Holdings, a British business bought by SoftBank in 2016, is making its own acquisitions - the latest is US company Treasure Data - ARM Holdings

British technology darling ARM Holdings has agreed to buy US-based data analytics firm Treasure Data, according to a report by Bloomberg.

Treasure Data may fetch about $600m (£457m) in the sale, sources said, asking not to be identified because the deal isn’t yet public. A spokesman for ARM declined to comment. A representative for Treasure Data did not immediately respond to requests for comment.

The acquisition is part of ARM’s push into the ‘internet of things’ - the concept of everyday items being connected to the internet and each other, feeding data back to their owner.

For businesses it could mean more efficient operations, for instance by monitoring repairs and maintenance more effectively, while for consumers the concept aims to give a more personalised service.

ARM has hired over 1,000 more staff since £24bn SoftBank sale

In June ARM, which is headed by chief executive Simon Segars, announced the acquisition of Stream Technologies, a Glasgow-based company that improves connectivity for internet of things devices.

SoftBank, which bought Cambridge-based chip-maker ARM in 2016 for $32bn, is interested in investing in artificial intelligence, driverless cars, the internet-of-things, robotics and ride sharing, chief executive Masayoshi Son has said.

The company has announced about $34bn in deals in the last year, according to data compiled by Bloomberg, and is investing in technology companies through its nearly $100bn Vision Fund.

The Vision Fund’s scale has allowed the investment group to take the world of technology companies by storm, pushing up valuations for startups and in some cases even offering more money for investment than target companies wish to take.

Other high-profile investments made by SoftBank include office sharing group WeWork and robotics company Boston Dynamics, which it bought from Google’s parent Alphabet.

SoftBank-backed venture emerges as surprise bidder in UK’s 5G auction

Treasure Data raised $25m in late 2016, and is backed by investors including Sierra Ventures and SBI, a former subsidiary of SoftBank.

The acquisition target, which is based in Mountain View, California, develops products to help companies analyse data for marketing and other purposes, such as dealing with a surge in data from a product launch or unifying information from sensors, according to its website.

Its products are used by the automotive, retail, Internet-of-things and entertainment industries, and the company said its customer-data platform can help users compete with “data giants like Netflix, Amazon and Facebook.”